GBP/JPY hammered down to 131.00 neighborhood, lowest since Nov. 2016

• Persistent fears of a no-deal Brexit continue to dent sentiment surrounding the British Pound.
• The BoE’s Super Thursday turns out to be a non-event and does little to provide any respite.  
• Reviving safe-haven demand benefitted the JPY and further collaborated to the bearish pressure.

The selling pressure around the British Pound picked up the pace in the last hour, with the GBP/JPY cross tumbling to the 131.00 neighbourhood – its lowest level since Nov. 2016

The cross extended the overnight rejection slide from the 133.00 handle and remained under some heavy selling pressure on Thursday – marking its fourth day of steep declines in the previous four.  

The British Pound remained depressed on the back of persistent fears of a no-deal Brexit and Thursday’s BoE monetary policy update also turned out to be a rather non-event from the GBP trader.

This coupled with reviving safe-haven demand provided an additional boost to the Japanese Yen, coupled with some technical selling below 132.00 further aggravated the intraday bearish pressure.  

The pair has now dropped below the early-January swing lows support near mid-131.00s and hence, a subsequent drop towards challenging the key 130.00 psychological mark now looks a distinct possibility.

Technical levels to watch